Microsoft Buys Skype

REDMOND, Wash. (AP) - Internet video chat service Skype is nowofficially a part of Microsoft. The two companies joined forces late Thursday when MicrosoftCorp. completed its $8.5 billion purchase of Skype. The closingcame five months after Microsoft announced the deal. Microsoft is counting on Skype to help it catch up in some thehottest markets in technology and media. Those areas include onlinesocializing, mobile phones and digital video. Skype's roughly 170 million users made 207 billion minutes ofvoice and video calls last year - almost 400,000 years' worth. Microsoft says Skype will operate as a division within theworld's largest software maker. Skype CEO Tony Bates is joiningMicrosoft to run the division. He will report to Microsoft CEOSteve Ballmer. Microsoft shares rose 5 cents to $27.23 in afternoon trading.